Hints & Tips
Preparation is everything
Be on the electoral roll
A mortgage lender will need to establish your credit score. One of the biggest factors that contribute to a credit score is your appearance on the electoral roll. So, if you’re not on this at your current address then get on it! This can be easily arranged online with most local authorities these days
Get everything registered to where you live
Yes, it can be a bit of a hassle to change the address on your banking, credit commitments, mobile phone etc every time you move. Especially if you’ve lived in a few properties over the years. But doing this will help boost your credit score, especially if you are a first-time buyer. So, if you get the following registered to your current home address then this will help:
Banking, all credit commitments, mobile phone, pay slips, drivers’ licence
Try and stay out of the overdraft
We know that this is easier said than done. But staying out of the overdraft demonstrates that you are living within your means, which strengthens your case with most lenders. However, please don’t be overly alarmed if you have been in the overdraft – we will assess the situation and advise accordingly.
Keep gambling to a minimum
A tenner on the Grand National is probably not going to do too much harm! But try not to have bank statements that are awash with bets or online bingo/online casinos etc
Provide documents in good order
For example - we can’t accept bank statements that are in a format that does not show your name or the bank’s name etc. And your pay slips should show both your name and your employer’s etc.
If you’re self-employed, try to get your personal tax return submitted by 5th October
Yes, we know that you have until 31st January to submit tax returns for the previous year. But most lenders would require your returns to be submitted by 5th October i.e. 6 months after the end of the tax year. For example, if you’re looking for a mortgage in December 2019 then most lenders need your April 2019 tax return to have been submitted by that point.
Ensure your credit file is accurate
We’ll need to know about any blips on your credit file in recent years e.g. defaults, court judgements, late payments etc. We would therefore advise that you’re aware of the content of your credit file. There are various companies that can make this info available to you, Experian, Equifax. Noddle, Clearscore and Call Credit to name but a few
No photos please
As convenient as it may be to take them, we can’t have photos of documents in file unfortunately
Declare all forms of income to HMRC
It is a criminal offence to not declare your income to HMRC. This includes rental income from buy-to-let properties. We therefore advise that all income has been declared prior to applying for a mortgage, and we will require proof of this.
If any of your deposit is being gifted
If you are receiving any gifts towards your deposit (e.g. from parents/grandparents etc) they will be required to sign a letter or form to confirm that the funds are non-returnable. They will also need to provide statements showing their funds, in order to comply with anti-money laundering regulations. Some people, possible from an older generation, may question this requirement, but it is non-negotiable in this day & age unfortunately. No proof of deposit = no mortgage.
Don’t take on any new credit
One you have a mortgage agreed in principle, and/or we have submitted a full mortgage application, please please PLEASE do not take on any new forms of credit without consulting us first! Increased credit could severely impact on your ability to borrow the required amount on a mortgage.
Should you have any queries regarding our hints and tips then please contact one of our experts.
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